Mumbai, Aug 9
Indian bullion prices ended marginally higher this week amid global market cues and higher festive demand. By mid-week, gold prices saw a significant dip, with the price of 24-carat gold dropping by Rs 91, but the price inched up higher toward the weekend.
Despite the short-term dip, gold continues to price in the broader impact of trade tariff uncertainty and dollar weakness, keeping the overall trend supported. Gold is expected to trade in a volatile range of Rs 99,000 to Rs 1,01,500, analysts said.
"Gold prices traded volatile, with rupee weakness supporting domestic prices, as MCX Gold settled at Rs 1,01,180 with gains of Rs 350, while Comex gold hovered around $3390 in a tight range between $3380 to $3405. Going ahead, prices are expected to remain choppy as Trump's tariff stance continues to create uncertainty, especially with the India deal appearing off the table for now. Any positive movement in the rupee could limit gold’s upside,” said Jateen Trivedi from LKP Securities.
Unfavourable base effects and policy-induced demand side effects will likely push CPI inflation beyond 4 per cent by the end of FY26. An increase in gold prices helped boost core inflation to 4.4 per cent in June from 4.1-4.2 per cent in February-May, the RBI said.